BILL ANALYSIS �
SB 1455
Page 1
Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1455 (Kehoe) - As Amended: May 29, 2012
Policy Committee:
TransportationVote:9-4
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the California Energy Commission (CEC) and
the Air Resources Board (ARB), by November 1, 2015, and every
two years thereafter as part of the Integrated Energy Policy
Report (IEPR), to report on the status of the state's
alternative transportation fuels use. The bill also requires
ARB and CEC, by November 1, 2014, to update the economic
analysis used in developing ARB's regulations to include a range
of petroleum and alternative fuel prices to more accurately
assess the future costs of petroleum-based fuels and alternative
fuels.
FISCAL EFFECT
1)Annual costs of approximately $150,000 to CEC to evaluate
alternative fuels use and include such information in the IEPR
(special fund).
2)Annual costs of approximately $300,000 to ARB to evaluate
alternative fuels use (special fund.)
3)Minor, absorbable costs to CEC and ARB to update the economic
analysis used in developing ARB's regulations (special funds).
COMMENTS
1)Rationale. The author intends the regular evaluations
required by this bill to ensure that the state's efforts to
encourage the use of alternative and renewable fuels are
informed by up-to-date, adequate and publicly available data
and analysis.
SB 1455
Page 2
2)Background. AB 2076 (Shelley, Chapter 936, Statutes of 2000)
directed CEC and ARB to develop and adopt recommendations for
the governor and the Legislature on a California strategy to
reduce petroleum dependence. In response, in August 2003, the
agencies released a report, Reducing California's Petroleum
Dependence, which recommends that California adopt a policy to
reduce gasoline and diesel fuel demand to 15% below 2003
demand levels by 2020 and maintain that level for the
foreseeable future. The report also presented strategies by
which the demand reduction goal could be achieved and
recommended that the goal be established in statute.
Similarly, AB 1007 (Pavley, Chapter 371, Statutes of 2005)
required ARB and CEC to develop and adopt a plan to increase
the use of alternative fuels without adversely affecting air
quality or water quality, or causing negative health effects.
In response, in December 2007, the agencies released the State
Alternative Fuels Plan, which declared the following
alternative fuels use goals as plausible: 9% of
transportation fuels by 2012, 11% by 2017, and 26% by 2022.
The plan also recommended establishment of a Clean Alternative
and Renewable Fuel, Vehicle and Advanced Technology Initiative
to provide annual funding of $100 million to $200 million to
advance innovative and pioneering technologies, a
recommendation achieved with passage of AB 118 (N��ez, Chapter
750, Statutes of 2007).
As part of its regulation of greenhouse gas emissions pursuant
to AB 32 (N��ez, Chapter 488, Statutes of 2006), ARB has
adopted a low-carbon fuel standard (LCFS), which requires
reduction in the carbon-intensity of California transportation
fuels of at least 10% by 2020. Achievement of the LCFS may
reduce Californian's use of petroleum fuels and increase their
use of alternative fuels.
Statue requires CEC to prepare a biennial integrated energy
policy report (IEPR) that contains an assessment of major
energy trends and issues facing the state's electricity,
natural gas and transportation fuel sectors and provides
policy recommendations to conserve resources, protect the
environment, ensure reliable, secure, and diverse energy
supplies, enhance the state's economy and protect public
health and safety. CEC prepares updates of the IEPR every two
years.
SB 1455
Page 3
3)Support. This bill is supported by CalSTART (sponsor), the
Natural Gas Vehicle Coalition (sponsor), the Sierra Club and
others who support the state's alternative fuels goals.
4)At the time this analysis was prepared, there was no
opposition formally registered against this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081